Posted on 26 Nov 2024
Thyssenkrupp Steel says it will cut around 5,000 jobs in production and administration by 2030. A further tranche of 6,000 jobs is to be transferred to external service providers or shed through the sale of business activities.
The steelmaker will lower annual production to 8.7-9 million tonnes, from 11.5mt currently. The reduced volume corresponds to shipments in the previous financial year.
Such a reduction is “in line with market conditions, thus adapting capacities to future market expectations,” it says in a press release sent to Kallanish. The figures are the cornerstones of a key issues paper on the company’s future strategic set up, which was announced previously.
Tk Steel’s separation from Hüttenwerke Krupp Mannesmann (HKM) remains a key element in the capacity reduction. The primary objective is to sell the shares in HKM. If a sale is not possible, tk Steel will hold talks with the other shareholders about mutually acceptable scenarios for the plant’s closure – the first time this option has been explicitly mentioned.
In addition, a processing site in Kreuztal-Eichen is to be closed.
“Comprehensive optimisation and streamlining of our production network and processes is necessary to make us fit for the future. We are aware that this path will demand a great deal from many people,” says tk Steel chief executive Dennis Grimm.
"In terms of operational efficiency and profitability, we still have some catching up to do in key competitive areas. We need to close these gaps if we want to look forward to a positive future,” adds Marie Jaroni, chief transformation officer.
The company maintains that it remains committed to the green transformation and carbon-neutral steel production, and is holding firmly to its intended plan of completing the direct reduction plant that is under construction. A decision on building another DRI plant will only be taken at a later date and under the economic, technological, and political conditions that apply at that time, tk Steel says.
Tk Steel employs around 27,000 workers.
Source:Kallanish
